Sime Plantation, COFCO plan tie-up
Sime Darby Plantation and COFCO in deal to undertake palm oil-related projects
BEIJING: Sime Darby Plantation Bhd (SDP) is looking forward to positive results from its collaboration with China-based COFCO Group Co Ltd (COFCO) on a number of new palm oil-related ventures.
Both parties signed an MoU for the collaboration at the China World Summit Wing, which was witnessed by Prime Minister Tun Dr Mahathir Mohamad as part of his five-day official visit to China.
The MoU included a joint research on the health benefits of palm oil, developing capabilities to manufacture specialty oils and fats, and establishing joint sales and marketing activities to promote high value differentiated palm products in China.
Through these initiatives, SDP and COFCO hoped to create greater demand for certified sustainable palm oil and increase trade volumes between the two companies.
At the signing ceremony, SDP executive deputy chairman and managing director Tan Sri Mohd Bakke Salleh said SDP is excited with the prospect of a close collab- oration with COFCO, a leading agriproduct merchandiser and food production company in China.
“This MoU truly reflects our aspiration to be the leader in promoting the health benefits of palm oil and to produce certified-sustainable, high value palm oil products for the global market.
“We look forward to seeing the positive results of combining Sime Darby Plantation R&D capabilities with COFCO’s expertise in advanced health-based food research,” he added.
Under the terms of the MoU, SDP and COFCO would conduct further research on the health benefits of products such as palm tocotrienol, red palm olein, and palm kernel oil.
In addition, the two companies intend to develop specialty products such as premium shortening and bakery fats for the Chinese market, and to explore possibilities to co-manufacture these healthy oils and specialty fats in Malaysia.
Bakke pointed out that “China is a key market for Malaysian palm oil and SDP is proud to contribute towards increasing trade volumes and strengthening of relations between Malaysia and China.”
He said SDP viewed its cooperation with COFCO as a significant milestone in enhancing the commercial relationships of both countries.
“We would like to applaud the Primary Industries Ministry for its role in initiating this collaboration,” added Bakke.
This MoU truly reflects our aspiration to be the leader in promoting the health benefits of palm oil. Tan Sri Mohd Bakke Salleh